Law of Agency Unit 6-12 Exam
A prospective buyer has telephoned a licensee to inquire about a property listed by the licensee's associated broker. Which of the following statements from the licensee might cause unintended dual agency?
"I can make sure you get the best price possible on that house."
Broker Pappas of Pappas Realty enters into a written agreement to represent seller Kelly and buyer Jenny that also authorizes Pappas to act as an intermediary. Pappas elects not to make appointments when Jenny begins negotiations for the purchase of Kelly's property. Under this scenario, which statement by the sales associate working with Jenny would NOT be authorized?
"In our market, buyers typically ask sellers to pay buyer closing costs."
Which of the following factual comments to the buyer by the appointed licensee would be permitted without the written permission of the seller in a fully authorized intermediary relationship with appointments?
"You could ask the seller to pay most of your closing costs"
UNIT 7
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Which of the following statements BEST describes intermediary practice?
A broker must agree to act as an intermediary when representing more than one party in a transaction.
In which of the following situations would an implied agency MOST likely develop?
A broker provides useful information to the buyer
Incapacity of the broker or the principal will terminate an agency relationship. What paperwork is needed to prevent this incapacity from bringing about this result?
A durable power of attorney. This document will allow a person who has been named as the attorney-in-fact to act on behalf of the principal named in the document. The word "durable" means that it survives the disability of the principal.
Broker Amil has a written listing agreement with George that also allows Amil to act as an intermediary and make appointments. Jean, a sales associate sponsored by Amil, has an oral agreement to represent her best friend, Mary, in the purchase of a new home. Jean shows George's property to Mary. Which statement is TRUE?
A is true! a. Amil has illegally entered into a dual representation role. b. Although Amil is an intermediary, his associate Jean is an undisclosed dual agent. c. Amil has legally become an intermediary because of the written permission granted by his client, George. d. Amil is an undisclosed dual agent, and his associate is the intermediary.
Broker Irma is a one-person brokerage office. If in an authorized intermediary relationship, she could
Act as the intermediary but not make appointments. Irma could be an intermediary, but she would not be able to afford the benefit of appointed licensees to her clients.
Which of the following is NOT among the standards that real estate licensees owe to everyone with whom they work?
Advice
Which of the following must a licensee provide to a client but NOT to a customer?
Advice The licensee must provide the customer with honesty, fairness, accurate information, and material facts concerning a property. In contrast, the client is entitled to accurate information, opinions, and advice about the significance of facts and information, the available alternative courses of action, and the agent's recommendations.
What does a real estate licensee serving as a representative in an intermediary transaction offer to a client that was NOT offered under dual brokerage?
Advice and opinions
In regard to the status of an intermediary, TREC generally interprets the relationship to be one of
Agency
Yolanda, a sales associate with Sapporo Realty, is having lunch with a friend. A man sitting at the next table is wearing a nametag indicating he is associated with another real estate firm in town. The man answers his cell phone and begins a conversation with someone he calls Ben. The man suggests to Ben that considering Ben's poor credit rating, he might begin negotiations by asking the seller for a low down payment and a wraparound mortgage. From the conversation, Yolanda might assume that the man is a(an)
Agent of the buyer.
TREC's Information About Brokerage Services form must be provided
At no time because the form is a convenience developed by TREC and licensees are free to develop their own forms that meet the statutory requirement.
Ostensible agency is based on a third party's
Belief that an agency relationship exists.
Broker Ben works alone. How can he appoint intermediaries to conduct a complex transaction involving several parties?
Ben cannot make any appointments. The broker cannot self-appoint to either and must maintain the role of the intermediary. Thus, a broker who works alone, or a broker with only one associate, cannot make appointments and must conduct the transaction as an intermediary without appointees.
Agency by ratification occurs when an agent performs an unauthorized act and the principal
Benefits from the act. Agency by ratification occurs when an agent performs an unauthorized act; the principal subsequently learns of the act; the principal does not repudiate (deny) the agent's authority to act; and the principal benefits from the act. Principals have an affirmative duty to reject any unauthorized acts of an agent; otherwise, the principals may be held liable for the consequences of the agent's actions.
Which of the following situations is NOT a common way in which unintended dual representation occurs?
Bob the broker represents the seller and Sarah, also a broker, is the buyer.
After Kelly signed the buyer representation agreement, Kelly became interested in one of broker Bill's listings. The scenario does not indicate that Jackie ever presented Kelly with the Information About Brokerage Services (IABS) form. Which of the following statements is TRUE?
Both sales agent Jackie and her broker are responsible for giving a written copy of the Information About Brokerage Services (IABS) form to buyer Kelly at the first substantive communication with Kelly relating to a proposed transaction regarding specific real property.
According to TREC, a broker must develop a company policies and procedures manual on agency so that each sponsored salesperson understands the scope of authorized activities and can
Completely conduct those activities
Which of the following conditions is MOST important when developing a company policy on disclosure?
Compliance with Texas Law
Which of the following is NOT a duty owed to a customer?
Confidentiality. An agent owes a duty of fairness, honesty, and disclosure of material facts to both clients and customers. The duty of confidentiality is owed to a client.
Which of the following terms BEST describes the formation of an agency relationship
Consensual relationship. Agency is a consensual relationship that to expressly create requires a delegation of authority by the principal and consent by the agent.
The creation of agency requires a delegation of authority by the principal and
Consent by the agent. Agency is a consensual relationship that to expressly create requires a delegation of authority by the principal and consent by the agent.
How can a licensee avoid creating an unintended dual agency when helping a buyer locate an appropriate home through a MLS service?
Create an expressed buyer agency agreement with the buyer. The expressed buyer agency agreement will establish the relationship between the buyer and the licensee, and the licensee will not be assumed to be a subagent of the listing broker.
During an open house, what behavior would trigger the need to provide a customer with the Information About Brokerage Services notice?
Customer asks in-depth questions. TREC does not require the Information About Brokerage Services notice to be given during the open house unless the party begins to ask in-depth questions, or indicates an interest in making an offer on the property.
Which event would be an example of termination of agency by operation of law?
Death of the owner
Which of the following statements BEST describes the status of dual agency in Texas at the present time?
Dual agency is no longer permitted in Texas. Intermediary replaced both common law and statutory dual agency. TRELA explicitly provides that the intermediary provision supersedes other law, including common law.
Which of the following is NOT a requirement of a broker's comprehensive plan?
Establish an office religion
Broker Fitzroy lists and sells Roni's house while representing Roni as a seller's agent; however, because of his brokerage policy, Fitzroy had to decline Roni's request to represent her in the purchase of another home. Fitzroy's office policy is that of
Exclusive seller agency. If Fitzroy's office policy is exclusive seller agency, then Fitzroy represents sellers as the listing broker or subagent of the listing broker. Fitzroy would never represent Roni as a buyer's agent.
Broker Ted manages owner Bob's 20-unit apartment complex. In case he wants to raise the rents, Bob instructs Ted to limit all leases to less than 90 days. In regard to providing the statutory information about brokerage services to prospective tenants, Broker Ted is
Exempt because the leases are under the statutory limit of 365 days. The only exemption for presentation of the statutory written statement in regards to leases is for a residential lease for not more than one year and a sale is not being considered.
Hans, a listing associate with Munchen Realty, is holding an open house at one of his new listings. The next door neighbor, Gretchen, arrives to tour the property along with friends who are relocating from another city. Hans introduces himself and explains that Munchen Realty represents the owner of the property. He does not provide the Information about Brokerage Services form; however, he does provide a general fact sheet about the property and mentions that the property is within FHA-insured loan limits for the area and that mortgage interest rates are the lowest they have been in years. In regard to agency disclosure and the statutory written statement, Hans
Fully complied with TRELA. This is a TRELA exception to providing the written information about brokerage services—if the meeting occurs at an open house.
The fiduciary duties demand that a real estate broker, acting as an intermediary in a transaction, place
His personal interest below those of his two clients. The agent representing more than one principal owes to each principal the same fiduciary duties of obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care. This requires placing the broker's interests second to the client's best interests.
Betty takes a listing on Sylvia's home. Without Sylvia's permission, Betty tells a prospective buyer at an open house that Sylvia is desperate to sell within the next 30 days. Betty Broker is
Implied agent of the buyer. Implied agency occurs when there is no express (either written or oral) agreement that the broker will act as an agent for a party, but the actions or words of the broker and the party lead the party to believe that the broker is representing the party's interests.
Bob, a broker, knows that a new highway will be built about 3 miles from his client Sarah's ranch. Even though Bob has not talked with Sarah about the highway, it is assumed that Sarah knows about it under the concept of
Imputed knowledge. Clients are considered to have the same information or knowledge that their agent has regarding a property or transaction. Because the agent has a duty to convey such information to the client, it is generally held that this has, in fact, occurred.
A court would consider notification to the agent as notification to the agent's principal because of the rule of
Imputed notice. Many licensees erroneously believe that agent must actually tell their principal before notice is effective. In reality, the knowledge of, or notice to, agents is binding on the principal, even if the information is never conveyed to the principal because the agents stand in the shoes of the client.
Which of the following is NOT a problem related to intermediary representation?
In an intermediary transaction, whether appointments are made or not, the buyer may be able to get the property he wants and the seller may be able to reach an agreement, sell his property, and conclude the transaction.
Broker Ted receives an e-mail from a prospective buyer who will soon be relocating into Ted's area from overseas. While surfing the web, the buyer became interested in several properties he found listed on Ted's website. Ted responds by e-mail and includes in his response considerable detail requested by the prospect about the seller financing limits of one particular owner. In regard to agency disclosure and the statutory information about brokerage services, Ted
Is not exempt from either disclosure, and he must therefore e-mail both disclosure of agency status and the written information about brokerage services. The written disclosure of roles brokers may play in a transaction is mandatory at first "substantive dialogue" relating to specific real property. Questions regarding financing options the seller might entertain would fall into the category of substantive.
Which of the following is NOT an element of agency by ratification?
Is the principal denies the agents authority to act. Under the ratification theory, principals are considered to have approved the agency if they accept the benefits of an agent's previously unauthorized act. This is agency after the fact. The four elements are the agent performs an unauthorized act, the principal subsequently learns of the act, the principal does not repudiate or deny the agent's authority to act, and the principal benefits from the act.
Once Jackie began to act as the broker's intermediary representative (i.e., no appointments were made), which of the following actions could she have taken legally?
Jackie could have continued as the broker's intermediary representative and not given advice or opinions to either party, acting impartially during the negotiations and helping them to conclude a transaction.
Which of the following statements BEST describes constructive notice?
Knowledge of the agent is imputed to the principal, even if the information is never actually conveyed to the principal.
Which of the following is NOT exempted from the licensing requirements under the Texas Real Estate License Act?
Loan officers
Which of the following statements is TRUE regarding disclosure of agency?
May be disclosed orally or in writing. Your representation status may be disclosed orally or in writing at the first contact with a party or to another agent representing a party to a real estate transaction.
Raymond has just received his broker's license and plans to open his own office, Homes Galore Realty. Agency options available for Raymond's new office would NOT include
Mediator. A mediator is not a type of agency but rather a process to help resolve disputes. Mediators do not have clients.
The sellers notify the listing broker that they no longer wish to sell their home because of a change in their financial status. The listing broker
Must do all of these things. a. must do all of these things b. must remove the advertising from the brokerage webpage c. must remove the brokerage signs from the property d. must remove the property from the local multiple listing service.
Broker Maggie Mae is representing her parents in the purchase of their new home. Maggie Mae will have no financial interest in her parents' new home. In regards to her relationship with the buyers, Maggie Mae
Must inform the sellers in writing of her relationship, regardless of any planned financial interest in the property.
Sales agents Hattie and Bob work for broker Phil. Hattie procures a listing agreement from a seller and Bob procures a buyer representation agreement with a buyer. Bob's buyer wants to buy Hattie's listing. An intermediary situation has arisen. Phil does not make appointments, but allows Bob and Hattie to continue working with their respective clients. Which of the following statements is TRUE?
Neither Hattie nor Bob are allowed to give advice and opinions to either client.
When can a seller force a broker to continue an agency relationship on the listing?
Never, because the broker can renounce the relationship unilaterally. Agency is highly personal consensual. The client cannot force an agent to continue providing agency duties once the agent has renounced.
Both buyer Betty and seller George gave written authorization for broker Terry to act as an intermediary but without appointments should the situation arise. Betty expresses interest in George's property. In regards to the intermediary transaction that now might arise, TRELA would require
No further notification to the parties from Terry, although it would be prudent to do so
Bob the broker recently obtained a listing for a small hotel. A prospect working without a buyer's agent puts an offer on the property with several contingencies through a licensee who works with Bob. That bid is presented to the seller. Another licensee in Bob's office, Brent, has a client who expressed interest in a similar investment. Brent calls the client and urges him to make an offer quickly if he is interested and tells him about the contingencies in the other party's contract. Has Bob's office acted properly?
No, Brent has provided his client with an unfair competitive advantage through the information he provided.
Les Stoker, a broker who practices nonexclusive seller agency, has a client who is determined to buy one of Stoker's in-house listings. Stoker explained the situation to the client, who agreed to go ahead with the transaction as an unrepresented customer. At lunch, the buyer talked with Les about the challenges his family business was having and his wife's upcoming legal case. This information indicated to Les that the now customer was in a weaker negotiating position than he thought. Because Les obtained this information after terminating the agency with the buyer, can he share it with the seller?
No, it appears that the buyer-customer does not understand the full implication of the changed relationship.
Broker Sue enters into a written agreement to represent seller James and buyer Mary that authorizes Sue to act as an intermediary and make appointments. What must Sue now do before any of her associates may show James's property to Mary?
Nothing. The buyer representation agreement with Mary and the listing agreement with James were sufficient to establish written consent for Sue to act as an intermediary.
Broker Blake enters into a written agreement to represent seller Kelly and buyer Jenny that also authorizes Blake to act as an intermediary. The written agreement does not specifically address authority for making appointments. If Jenny now wishes to enter into negotiations for the purchase of Kelly's property, what must Blake do before making appointments for his two clients?
Obtain written consent from Kelly and Jenny to make appointments.
There are both differences and similarities when client and customer services are compared. A service that is a client service but not a customer service is
Opinions and advice
Agency can be created by an oral agreement between the agent and the principal, but a broker should establish a written contract to
Protect the interests of both parties
When a broker is serving a customer as a subagent of the seller, the broker should NOT
Provide the customer with advice. A broker who is acting as a subagent should not provide advice because this is limited to agency relationships.
Sandy, a real estate broker, is often asked for her opinion about real estate matters when she attends meetings of the Chamber of Commerce, and even when she attends her children's baseball games. What is the BEST advice for Sandy to follow to avoid potential agency issues?
Refrain from answering questions from nonclients. It is very risky for real estate licensees to offer information when they do not know a complete situation, and consumers often confuse agency relationships.
Nonexclusive seller agency brokers will
Represent buyers/tenants or sellers/landlords, but not in the same transaction. Nonexclusive single agency describes a form of agency whereby the broker represents either the buyer/tenant or seller/landlord, but never both in the same transaction. Such brokers can never act as intermediary in a real estate transaction.
Georgio listed his property for sale with Tony Principi, principal broker for Principi Realty. Georgio decides to seek a tenant for his property rather than sell, so he asks Tony to remove the property from the market. If Tony agrees to release Georgio from his obligations under the contract, agency has been terminated by
Rescission
Which of the following is NOT an example of termination of agency by operation of law?
Revocation by the principal
Which written statement(s) must be in at LEAST 10-point type?
Statements regarding the roles brokers might take in a transaction. TRELA states that the written statement may be produced in any format desired by the broker so long as the language is unchanged and the print is at least 10-pt type.
"Agency by ratification" does NOT require which of the following?
The agent provides written notice describing the nature and results of the act. The fourth element required is that the principal benefits from the act.
A broker owns a firm with one other salesperson. Which of the following statements is TRUE with respect to the broker's ability to engage as an intermediary between a seller and a buyer?
The broker may act as an intermediary between a buyer and the seller but cannot make appointments. At least three licensees are required to engage in intermediary with appointees representing both the buyer and the seller. In this case, the broker may act as an intermediary but must remain impartial to the buyer and the seller and not provide advice or opinion either party.
In a real estate transaction where the broker is an intermediary between a buyer and a seller and no appointments have been made, which of the following statements BEST describes the broker's role in the transaction?
The broker must remain impartial and not give preferential treatment to the buyer or the seller.
A broker owns a firm with two sponsored salespersons. The broker obtained the original listing and brought in the potential buyer. Which of the following statements BEST describes the broker's authority to act as an intermediary in the transaction?
The broker should act as the intermediary and appoint each of the sponsored salespersons to the buyer and the seller.
A broker represents a seller and has an office policy of acting as an intermediary. A sponsored salesperson brings in a buyer who wishes to purchase one of the broker's listings. The buyer wishes to remain unrepresented. What is the BEST choice available to the broker in this case?
The broker should continue to represent the seller and treat the buyer as a customer. If the buyer wishes to remain unrepresented, the broker should feel no pressure to attempt to represent the buyer just because he has an office policy of intermediary.
According to TRELA, which agreement between a broker and her clients must be in writing?
The broker will act as an intermediary and make appointments. The mandatory written statement regarding the roles brokers play in a transaction must be delivered at first substantive dialogue with consumers relating to specific real property. The statement indicates that the broker becomes the owner's agent or the buyer's agent "usually" through a written listing or buyer representation agreement, the implication being that agreements establishing single agency may be oral. However, the description of the intermediary role states the broker "must obtain the written consent of each party to the transaction to act as an intermediary"
Dual agency arrangements are NOT favored by brokers because
The brokerage is exposed to a much greater degree of liability as it tries to balance the interests of the buyer-client and the seller-client.
Which of the following steps are necessary to create an intermediary relationship?
The intermediary relationship must be created in writing and agreed to by both the broker and each client individually, and the writing must have in bold print a notice with the five TRELA requirements of a broker to act as an intermediary.
How is the length of a listing agreement determined?
The length of a listing is negotiated between a broker and a seller. TRELA does not limit the term of these agency agreements, but it is inherent in agency law that such agreements must be for reasonable periods.
According to TRELA, which of the following licensees is NOT required to make a disclosure?
The licensee who represented an unsuccessful bidder the last time the property was sold. The licensee who is trading on his own account, the licensee who represents the seller, and the licensee who represents the buyer must disclose their relationships.
What happens if a broker becomes ill and cannot continue to represent the seller during the term of a listing?
The listing is terminated.
Two salespersons are appointed by their brokers to represent the buyer-client and the seller-client in a transaction using the intermediary brokerage process. The salespersons may disclose
The name of the lender that the buyer has selected. While the appointed salespersons may not divulge any confidential information that the party they are representing has entrusted to them (the other answer choices of this question are good examples of confidential information), basic business facts, such as the name of the lender that the buyer will be using, are not considered confidential information and must be known by both parties in order to move the transaction forward.
Which of the following statements describes undisclosed dual representation in other kinds of real estate transactions?
The representation of more than one party is not confined to residential transactions.
ABC Brokerage is careful to include all the proper language to permit intermediary relationships in their buyer-representation and listing contracts. They have trained their salespersons to carefully explain how this can happen in an in-house transaction. Under these circumstances, why might it be important to provide a "second consent" form when a represented buyer becomes interested in one of the brokerage's listings?
The second form helps to remind the buyer and the seller about intermediary brokerage and provides a way to meet the statutory requirement to identify the appointed licensees by name to all parties.
Broker Bob wants to purchase a home that appears in the MLS that was listed by another broker. Bob has never met the broker or the owner. Why is it necessary for Bob to disclaim any subagency when purchasing this property?
The seller may claim that Bob owed fiduciary duties to the seller under any MLS offer of subagency.
Which of the following steps in developing a company policy on disclosure should come last?
Train the staff and monitor performance
Broker Bill has written authorization from both his clients, seller Ringo and buyer Ted, to act as an intermediary and make appointments should the situation arise. Bill preappointed two sales associates, Alice and Gwen, to work as appointees to Ringo and Ted, respectively, should it become necessary. While Bill is on an extended conference in Las Vegas, Ted decides to enter into negotiation with Ringo. In regard to the appointees,
Until both clients are given written notification and the names of the appointees, Alice and Gwen must perform the duties of an intermediary and remain impartial.
Chuck, a sales associate with Lakenheath Realty, drops by one of his vacant listings to turn off the hot tub. As he is leaving, buyer Jacob arrives and introduces himself, mentions that he is represented by broker Lowell at Donegal Realty, and asks to view the property. Before showing the listing to Jacob, TRELA would require Chuck to
Verbally disclose Chuck's agency relationship with the owner to Jacob. TRELA would exempt Chuck from having to provide the written statement regarding brokerage services in this case, because Jacob indicates he is already represented by Lowell, a licensee from another company. Chuck would, however, be required to at least verbally disclose that, as the listing associate, he represents the seller.
What is undisclosed dual agency?
When a non-represented buyer believes that a licensee is acting for her, and the licensee fails to make it clear that he represents the seller either as an agent or as a subagent. Undisclosed dual agency applies when a party believes that someone is acting on that party's behalf. It is disclosed or express dual agency if the party knows that the agent is representing both that party and the other party in the transaction.
Under TRELA, there are certain exceptions to providing the written information about brokerage services (which has been included in the Information About Brokerage Services form). These exceptions include all of the following EXCEPT
When the buyer or seller is a child, spouse, or a parent of the licensee
What decision must a licensee make to form an appropriate working relationship with each individual in a transaction?
Whom to represent.
Why do in-house sales provide the opportunity for unintended dual agency?
Without an intermediary agreement, the firm cannot represent both parties. Even if a broker believes that both buyer and seller will be treated fairly, and that each will receive full representation from their respective associates, the situation presents an unintended dual agency opportunity.
In which of the following situations is unintended dual agency likely to occur?
Working with a former client as a customer
Roni, who has just received her broker's license, immediately opens her own brokerage office, Whiska's Realty. Numerous licensees with whom she has worked in the past approach her for sponsorship. Although Roni is anxious to get started, she has no time to set up a training program. In the past, she focused on property management rather than residential sales and feels insecure in her understanding of intermediary relationships that frequently arise in residential sales. In regard to intermediary services, Roni
Would be best advised to deny intermediary services to clients until she had time to formally establish a clear office policy for her new licensees. Considering the risks, many brokers elect not to offer dual representation and prefer the safety of single agency relationships to avoid conflict of interests between competing clients. Because a broker is responsible for the acts of all associated licensees [§ 1101.803], Roni would be well advised not to permit intermediary practice in her office until she, herself, is comfortable with the role. In the interim, she can develop a well-written office policy manual and set up a training program and a means to measure the effectiveness of the training before offering intermediary services to her clients.
Which of the following is an example of an express agency agreement?
Written listing agreement
Brent, a licensee in Bob the broker's office, wants to help his mother-in-law find a town house. When Bob obtains the listing on an appropriate property, Brent shows his mother-in-law the property. She wants to make an offer. Is it possible for Brent's mother-in-law to buy this property without causing Brent to violate real estate rules and regulations?
Yes, as long as Brent reveals his relationship in writing, and the firm continues to work on behalf of the seller, to whom it owes the standard duties of full disclosure, skill, and care.
Herb is a broker who is representing Albert Dorgan in the sale of his store. While Herb was photographing the store, a consumer visited the property. The customer asked Herb if he knew about the status and zoning of the property and if the current tenant has a lease. Is it necessary for Herb to disclose his agency relationship to this customer?
Yes, based on the questions the customer is asking. A licensee who already represents a party in a proposed real estate transaction must disclose that representation at the time of first contact with another party to the transaction.
Carson is a broker who works with four licensees. Business is good, and only two licensees are available for Carson to appoint as intermediaries in a transaction. One of these licensees has many years of experience with similar transactions. The other licensee has very little real estate experience but has an MBA. Can Carson appoint the experienced licensee for one party and the inexperienced licensee to the other?
Yes, but one party may later claim that the less-experienced appointee created a disadvantaged position. Many legal and ethical concerns are involved with intermediary transactions. A broker should carefully study the law and determine company policy regarding procedures.
Seller Vincent decided to let the listing agreement he had with broker Bob expire and sell the property himself. Prospective buyers who looked at Vincent's farm twice while Bob had the listing remained interested in the property, and they want to buy the farm from Vincent directly. Does Bob retain any interest in this transaction?
Yes, if the buyer is registered under a protection clause. After a listing expires, the seller may have continuing obligations to the former broker for buyers who were shown the property during the listing period by the broker, and who were registered under a protection clause, if included in the listing contract. During a protection period, if a protected buyer attempts to purchase directly from the seller after the listing expires, the seller would still be obligated to pay the broker a commission.
Which of the following statements is TRUE?
a. Any real estate licensee can use the Intermediary Relationship Notice form created by the Texas Association of REALTORS®. b. The Intermediary Relationship Notice form was created by the Texas Real Estate Commission. c. All licensees are required to use the Intermediary Relationship Notice form created by the Texas Association of REALTORS®. d. Only REALTOR® members may use the Intermediary Relationship Notice form created by the Texas Association of REALTORS®. the answer is D!
A third party is entitled to
accurate information
The BEST stage of the transaction to present the required written statement regarding agency options to the buyer would be
before beginning any substantive discussions with the buyer. This statement must be given at the first meeting at which substantive discussion occurs regarding real property. All other choices would not satisfy the requirement for timely presentation of the notice at first substantive dialogue
Which of the following statements is TRUE?
broker may act as an intermediary between parties in a real estate transaction with the written consent of each party
A license holder wishes to purchase a listing he came across in the MLS. The law requires that the broker do which of the following?
c. all of these a. Not use the license holder's expertise to the disadvantage of the seller b. Disclose in writing that the license holder is a broker or a salesperson c. All of these d. Provide a comparative market analysis to the seller
The fiduciary duty that remains even after the termination of the agency relationship is
confidentiality The duty of confidentiality, which would require that all information of a confidential nature learned while acting as the agent of the seller, remain confidential even after the listing terminates.
Between which of the following sets of groups must brokers be able to distinguish in order to decide their agency responsibilities?
customers and clients. Licensees have different responsibilities to parties they represent and those they do not.
A type of agency whereby the broker represents both buyer and seller is
intermediary agency
A broker acts as an intermediary between a buyer and a seller. Once appointments are made, the broker must
remain neutral